If movement of labor across countries is costless and painless, it can be expected that
A. all the countries in the world will operate at the full-employment level.
B. the rate of unemployment will fall to zero in all the countries.
C. the gross domestic product of the countries will equalize over time.
D. the wage rates in the countries will equalize over time.
Answer: D
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If the marginal rate of technical substitution of labor for capital (MRTSLK) exceeds the relative price of labor in terms of capital (PL/PK), then
a. the firm's long-run average cost curve is rising. b. the firm is producing its output at the least possible cost, but the firm should reduce its output level to increase its profits. c. the firm has increased its output level beyond the point of diminishing marginal returns. d. the firm needs to use less capital and more labor to reach its expansion path.
The egalitarian principle says
A) that everyone should have exactly the same income. B) that the age-earnings cycle should determine income. C) that people should be compensated on the basis of what they produce. D) that people should be compensated on the basis of their need.
Table 9-1 Output Consumption Investment Net Exports 1,000 800 500 100 1,500 1,200 500 100 2,000 1,600 500 100 2,500 2,000 500 100 3,000 2,400 500 100 3,500 2,800 500 100 4,000 3,200 500 100 ? In Table 9-1, the equilibrium level of output is
A. 2,500. B. 3,000. C. 3,500. D. 4,000.
Which of the following compose the reserves of a commercial bank?
A. checkable deposits and time deposits B. vault cash and deposits of the bank with the Federal Reserve C. U.S. securities and stock equity D. cash and U.S. securities